BILL NUMBER: AB 2060	CHAPTERED  09/07/00

	CHAPTER   331
	FILED WITH SECRETARY OF STATE   SEPTEMBER 7, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 6, 2000
	PASSED THE ASSEMBLY   AUGUST 24, 2000
	PASSED THE SENATE   AUGUST 23, 2000
	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 8, 2000
	AMENDED IN SENATE   JUNE 15, 2000
	AMENDED IN ASSEMBLY   APRIL 27, 2000
	AMENDED IN ASSEMBLY   APRIL 12, 2000
	AMENDED IN ASSEMBLY   APRIL 4, 2000

INTRODUCED BY   Assembly Members Steinberg and Shelley
   (Principal coauthor:  Assembly Member Bock)
   (Principal coauthor:  Senator Murray)
   (Coauthors:  Assembly Members Calderon, Corbett, Havice,
Longville, Lowenthal, Mazzoni, and Washington)

                        FEBRUARY 22, 2000

   An act to amend Sections 8869.80 and 8869.84 of the Government
Code, relating to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2060, Steinberg.  Federal tax credits:  housing:  teachers.
   Existing law sets forth various findings and declarations of the
Legislature with respect to the substantial public benefit served by
assistance for housing for lower income families and individuals.
Existing law also establishes the California Debt Limit Allocation
Committee for the purpose of implementing the unified volume limit
for the state on private activity bonds established pursuant to
federal law.
   This bill would further declare that a substantial public benefit
is served by providing federal tax credits or reduced interest rate
mortgages to assist teachers, principals, vice principals, and
assistant principals who are willing to serve in low performing
schools to purchase a home.  The bill would authorize the California
Debt Limit Allocation Committee to establish the Extra Credit Teacher
Home Purchase Program to provide federal mortgage credit
certificates and reduced interest rate loans funded by mortgage
revenue bonds to eligible teachers, principals, vice principals, and
assistant principals who agree to teach or provide administration in
a low performing school.  This bill also would require that, if the
committee establishes this program, it shall report annually to the
Legislature the results of the program.  It would also make various
technical, nonsubstantive changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8869.80 of the Government Code is amended to
read:
   8869.80.  The Legislature hereby finds and declares all of the
following:
   (a) The Tax Reform Act of 1986 (Public Law 99-514) establishes a
unified volume ceiling on the aggregate amount of private activity
bonds that can be issued in each state.  The unified volume ceiling
is the product of seventy-five dollars ($75) multiplied by the state
population in 1987 and fifty dollars ($50) multiplied by the state
population in each succeeding calendar year.
   (b) The federal act requires each state to allocate its volume
ceiling according to a specified formula unless a different procedure
is established by Governor's proclamation or state legislation.
   (c) Therefore, it is necessary to designate a state agency and
create an allocation system to administer the state unified volume
ceiling.
   (d) A substantial public benefit is served by promoting housing
for lower income families and individuals.
   (e) A substantial public benefit is served by preserving and
rehabilitating existing governmental assisted housing for lower
income families and individuals.
   (f) A substantial public benefit is served by providing federal
tax credits or reduced interest rate mortgages to assist teachers,
principals, vice principals, and assistant principals who are willing
to serve in low performing schools to purchase a home.
  SEC. 2.  Section 8869.84 of the Government Code is amended to read:

   8869.84.  (a) The committee shall, as soon as is practicable after
the start of each calendar year, determine and announce the state
ceiling for the calendar year.
   (b) The entire state ceiling for each calendar year is hereby
allocated to the committee to further allocate to state and local
agencies as provided in this chapter.
   (c) The committee shall prepare application forms and announce
procedures for receipt and review of applications from state and
local agencies desiring to issue private activity bonds.
   (d) The committee may at any time, before or after granting any
allocations in any calendar year to any state agencies or local
agencies, announce priorities or reservations of any part of the
state ceiling not theretofore allocated either for certain categories
of bonds or categories of issuers.
   (e) The committee may require any issuer making an application to
the committee or MBTCAC for allocation of a portion of the state
ceiling to make a deposit, as determined by the committee, of up to 1
percent of the portion requested.  If an allocation is not given,
the deposit shall be returned.  If an allocation is given, the
deposit shall be kept (in proportion to the amount of allocation
given) until bonds are issued.  Upon that issuance, the deposit shall
be returned to the issuer in an amount equal to the product of (1)
the amount of the deposit retained times (2) the ratio between the
amount of bonds issued divided by the amount of allocation granted.
If no bonds are issued prior to the expiration of the allocation, the
deposit shall be kept, unless the committee determines there is good
cause to return all or part of the deposit.  Any portion of a
deposit kept shall be deposited in the fund.
   (f) The committee may transfer part of the state ceiling to the
MBTCAC, to be used for qualified mortgage bonds and exempt facility
bonds, as those terms are used in the Internal Revenue Code, for
qualified residential rental projects, as those terms are used in the
Internal Revenue Code, (together referred to as "housing bonds"),
with directions and conditions pursuant to which MBTCAC may allocate
those amounts to issuers of housing bonds at both the state and local
level.  In carrying out these functions, MBTCAC shall act solely as
directed or authorized by the committee.  If the committee makes the
transfer to MBTCAC authorized by this subdivision, the references in
Sections 8869.85, 8869.86, 8869.87, and 8869.88 to the "committee"
shall, for purposes of any housing bonds, be deemed to mean MBTCAC.
   (g) (1) The committee may establish the Extra Credit Teacher Home
Purchase Program to provide federal mortgage credit certificates and
reduced interest rate loans funded by mortgage revenue bonds to
eligible teachers, principals, vice principals, and assistant
principals who agree to teach or provide administration in a low
performing school.  For purposes of this program, a low performing
school is a state K-12 public school that is ranked in the bottom 30
percent of all schools based on the most recent Academic Performance
Index.  The committee may make reservations of a portion of future
calendar year state ceiling limits for up to five future calendar
years for that program.  The committee may also make future
allocations of the state ceiling for up to five years for any issuer
under that program.  Any future allocation made by the committee
shall constitute an allocation of the state ceiling for a future year
specified by the committee and shall be deemed to have been made on
the first day of the future year so specified.
   (2) The committee may condition allocations under the Extra Credit
Teacher Home Purchase Program on any terms and conditions that the
committee deems necessary or appropriate, including, but not limited
to, the execution of a contract between the teacher, principal, vice
principal, or assistant principal and the issuer whereby the teacher,
principal, vice principal, or assistant principal agrees to comply
with the terms and conditions of the program.  The contract may
include, among other things, an agreement by the teacher, principal,
vice principal, or assistant principal to teach or provide
administration in a low performing school for a minimum number of
years, and provisions for enforcing the contract that the committee
deems necessary or appropriate.
   (3) In the event a teacher, principal, vice principal, or
assistant principal does not fulfill the requirements of a contract
entered into pursuant to paragraph (2), the issuer of the mortgage
credit certificate or mortgage revenue bond may recover as an
assessment from the teacher, principal, or assistant principal a
monetary amount equal to the lesser of (A) one-half of the teacher's,
principal's, vice principal's, or assistant principal's net proceeds
from the sale of the related residence or (B) the amount of monetary
benefit conferred on the teacher, principal, vice principal, or
assistant principal as a result of the federal mortgage credit
certificate or reduced interest rate loan funded by a mortgage
revenue bond, offset by the amount of any federal recapture, as
defined by Section 143(m) of the Internal Revenue Code.  The
assessment may be secured by a lien against the residence, which
shall decline in amount over the term of the contract as the teacher,
principal, vice principal, or assistant principal fulfills the term
of the contract, and which shall be collected at the time of sale of
the residence.  Any assessment collected pursuant to this paragraph
shall be used for the issuer's costs in administering the Extra
Credit Teacher Home Purchase Program.  The issuers shall report
annually to the committee the total amount of any assessments
collected pursuant to this paragraph and how those assessments were
used by the issuer.
   (4) If the committee establishes the Extra Credit Teacher Home
Purchase Program pursuant to this subdivision, the committee shall
report annually to the Legislature the results of the program,
including all of the following:
   (A) The amount of state ceiling limits allocated to or reserved
for the program.
   (B) The agencies to which state ceiling limits were issued.
   (C) The number of loans or mortgage credit certificates issued to
teachers, principals, vice principals, and assistant principals.
   (D) The schools at which recipients of assistance are employed,
aggregated by decile in which the schools rank on the Academic
Performance Index and by the percentage of uncredentialed teachers
employed at the schools.
   (5) The committee shall not make any reservations of future
calendar year state ceiling limits or future allocations of the state
ceiling pursuant to this subdivision on or after January 1, 2004,
unless a later enacted statute, that is enacted before January 1,
2004, deletes or extends that date.  However, reservations and
allocations made prior to that date shall remain valid.
